By: Mitalo, Ruth Atidah, Dr. Florence Muindi, Prof. Peter K’Obonyo, Prof. G. P. Pokhariyal
Compensation is essential to the functioning of the relationship between the employee and employer and very close to the heart of both the employer and the employee. This research investigated the effect of supervisor support in the relationship between compensation and employee performance. Lack of clear criteria and unfairness in distributing incentives to academic staff and supportive supervisors could influence staff performance. There is need to consider fairness in distributing incentives and to have supportive supervisors who will motivate the academic staff and in turn improve their performance. The main objective of this study was to determine the joint relationship between compensation, supervisor support and employee performance in Kenyan chartered public universities. The study was based on Expectancy Theory and Social Exchange Theory. The study adopted positivist research philosophy. A descriptive cross-sectional design was adopted to enable the researcher discover the relationship between different variables. The study targeted academic staff in 23 Kenyan chartered public universities. Multistage sampling technique was used to identify respondents from Kenyan Chartered Public Universities. The number of Faculties/Schools/Institutes sampled was 43 out of 246. A sample size of 370 academic staff was selected from a population of 8281 using easy sample size calculator. Data was collected on employee compensation, supervisor support and employee performance using a questionnaire. 247 questionnaires were returned out of 370 administered, thus a response rate of 67%. Quantitative technique was used to analyze data. Diagnostic tests revealed normal distribution of data and thus appropriate for hypothesis testing. Jointly, employee compensation and supervisor support were significant predictors of employee performance. It was concluded that employee compensation and supervisor support have a moderate positive significant effect on employee performance when regressed jointly. The model attained a goodness of fit as demonstrated by a significant F-ratio. The study also found that the relationship between employee compensation and performance is not moderated by supervisor support. Employee compensation, supervisor support and the interaction term had insignificant Beta coefficients. The study concluded that supervisor support does not moderate the relationship between employee compensation and employee performance. The study recommended universities should consider paying more benefits to its employees in order to retain them and ensure they perform well.
Key Words: Employee Compensation, Supervisor Support, Employee Performance, Academic Staff, Chartered Public Universities
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About the Authors:
- Mitalo Ruth Atidah- Correspondent Author, School of Business, University of Nairobi, P.O. Box 30197-00100 Nairobi, Email:firstname.lastname@example.org
- Dr. Florence Muindi- Senior Lecturer, Department of Business Administration, University of Nairobi, Kenya
- Prof. Peter K’Obonyo- Professor, Department of Business Administration, University of Nairobi, Kenya
- Prof. G. P. Pokhariyal- Professor, Department of Mathematics, University of Nairobi, Kenya